Answer:
The amount of interest expense Crane will show with relation to these bonds for the year ended December 31, 2020 is $81,220.
Explanation:
This can be calculated as follows:
Annual amortization = (Face value of the bonds - Proceeds from the bonds) / Tenure of the bonds = ($848000 - $799000) / 10 = $49,000 / 10 = $4,900
Interest expenses for 2020 = (Face value of the bonds * Annual interest rate) + Annual amortization = ($848000 * 9%) + $4,900 = $76,320 + $4,900 = $81,220
Therefore, the amount of interest expense Crane will show with relation to these bonds for the year ended December 31, 2020 is $81,220.
